Excess supply expectations rise in addition to the dawn of the peace agreement in Ukraine, leading to a drop in international oil prices.

This Friday, international oil prices fell by more than $1 per barrel. Market concerns about global oil oversupply continue to intensify, while negotiations for a peace agreement in Ukraine are showing signs of progress. Ukrainian President Zelensky is scheduled to meet with US President Trump this weekend, leading to a decrease in geopolitical conflict risk premium, causing investors to choose to sell after weighing multiple factors. WTI crude oil fell by 2% intraday, now trading at $57.18 per barrel. Despite recent supply disruptions driving oil prices rebounding from a near five-year low touched on December 16, international oil prices are still highly likely to see the most significant annual decline since 2020. Amid rising crude oil production, market concerns about oversupply in the coming year continue to ferment, with Brent crude and US oil prices falling by 18% and 20% respectively over the year.